Tender offer at 32% premium would make youngest Hanwha heir the largest individual shareholder
Hanwha President Kim Dong-seon is putting 128.5 billion won ($96.3 million) of his own money into a tender offer for a 19 percent stake in Hanwha Machinery & Service Holdings, offering a 32 percent premium in a move that would make him the company’s largest individual shareholder.
Kim, the youngest son of Hanwha Group Chair Kim Seung-youn and head of future strategy at Hanwha M&S, will offer 8,000 won per share for up to 16.06 million shares from Monday through Nov. 2, the company said.
If fully subscribed, the tender offer would raise Kim’s stake from 5.81 percent to 24.81 percent, putting him ahead of Hanwha Energy’s 23.94 percent stake.
Kim's move comes as shareholders have voiced concerns over the company’s declining share price and future growth prospects. Hanwha M&S, which debuted on the Kospi at 10,100 won per share on Aug. 25, kept falling to hit a low of 5,510 won on Oct. 1 amid such worries among investors.
As the holding company overseeing Hanwha's life and tech units, Hanwha M&S stands at the top of 56 subsidiaries and affiliates. The group reported approximately 6 trillion won in consolidated revenue per year and 11.3 trillion won in total assets at the end of last year.
“The growth potential of Hanwha Group’s tech and life businesses has not been fully reflected in the share price,” a Hanwha M&S official said.
“We expect Kim’s tender offer to send a positive signal to the market and shareholders, ultimately helping enhance both shareholder and corporate value.”
hwkan@heraldcorp.com